Business | Markets
CME expects acquisition of Nymex on August 22
CME Group, operator of the world's largest derivatives exchange, said on Friday that it expected its $8.4 billion acquisition of Nymex Holdings to close on August 22, if shareholders and members vote for the deal at meetings scheduled for August 18.
- Reuters
- Published: 23:51 August 16, 2008
New York: CME Group, operator of the world's largest derivatives exchange, said on Friday that it expected its $8.4 billion acquisition of Nymex Holdings to close on August 22, if shareholders and members vote for the deal at meetings scheduled for August 18.
Last week, there were reports that a number of Nymex members were threatening to scuttle the deal over concerns about the tax treatment of the $750,000 that CME would pay for each Nymex seat.
On Thursday, two Nymex members, who had previously led campaigns to pressure CME to increase its bid, urged other members to support the deal. CME will now pay 0.1323 of a share and $36 in cash for each share of oil and metals exchange operator Nymex.
Initially, CME had offered $612,000 per Nymex seat, but increased that to $750,000 last month in a bid to placate members who had threatened to derail the transaction.
At least 75 per cent of Nymex's 816 members have to approve the deal by tomorrow's deadline for it to go through.
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